This morning’s ADP National Employment Report showed the addition of 173,000 jobs to private payrolls from April to May. Economists polled by Reuters ahead of the report predicted gains ranging from 105,000 to 200,000 jobs, with an average estimate of 175,000 jobs.
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“Job creation appears to have slowed as we move further into 2016,” said Ahu Yildirmaz, VP and head of the ADP Research Institute, in a statement. “Challenging global conditions affecting hiring at large companies and a tightening labor market for skilled workers are among the factors that may be contributing to the slowdown.”
Small businesses added the most jobs last month; companies with fewer than 50 employees added 76,000 jobs to their payrolls. Medium-sized businesses with between 50 and 499 employees added 63,000 jobs, while large businesses with 500 or more employees added 34,000 jobs.
Manufacturing lost 3,000 jobs last month, after losing 10,000 jobs in April. Construction added 13,000 jobs in May, similar to April’s gains. Professional and business services added 43,000 jobs, while trade, transportation, and utilities added 28,000 jobs, and financial activities added 13,000.
“Job growth has moderated this spring as energy companies and manufacturers shed jobs,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Retailers are also more circumspect in their hiring. Despite the recent slowdown, job growth remains strong enough to reduce underemployment.”
Economists predict that tomorrow’s report from the Labor Department will show 162,000 jobs added to public and private, non-farm payrolls, and a slightly lower unemployment rate of 4.9 percent. The PayScale Index, which measures the change in wages for employed U.S. workers, forecasts 2 percent wage growth, year-over-year, for the second quarter.
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